Construction contractors file suit for nonpayment of bills

Most people at some point in their lives have likely taken a plane from one destination to another destination for either business or pleasure. However, many travelers in Louisiana who pass through major airports throughout the country do not think about all the construction activity that makes the existence of an airport possible. Even though the end result of a construction project may seem flawless, sometimes construction disputes arise.

Recently, a construction contractor that was instrumental in the building of a major airport filed a lawsuit against the airport claiming that they failed to pay nearly $2.4 million to an electrical subcontractor. According to the electrical subcontractor they were provided imprecise, error-ridden designs that made it virtually impossible for them complete their duties at the contracted rate. Furthermore, the lawsuit alleges that the city that airport is in interfered and prevented the subcontractor from performing their electrical duties. Even though explicit requests for extra money were made, they were allegedly flat-out denied.

In addition to the general contractor and electrical contractor, other subcontractors have also filed lawsuits for various changes and other delays during the construction project. However, under an existing contract, an administrative claim must first be filed with the city before a lawsuit can be filed. Based on the alleged nonpayment of bills and other construction related disputes, other lawsuits are expected to be filed.

Clearly, when disputes on multi-million dollar projects that involve multiple parties such as a city, general construction contractor and various other subcontractors arise, the issues can get complicated very fast. A law firm familiar with such complex construction contracts and surrounding issues can be instrumental in getting the results one wants and resolving issues expeditiously.

Source: Daily Breeze, “Construction firm files suit against LAX for nonpayment related to new international terminal,” Brian Sumers, Feb. 3, 2014